Michigan LLC Taxes & Fees 2026: $50 Form + $25 Annual Report

Quick Answer

Forming an LLC in Michigan costs only $50 for the Articles of Organization—one of the lowest formation fees in the country. The annual statement fee is just $25, due by February 15 each year. Michigan has no franchise tax for LLCs, and pass-through taxation means LLC members pay state income tax at the 4.25% rate.

Item	Cost/Details	Notes
Articles of Organization	$50	One-time formation fee
Annual Statement	$25	Due February 15 each year
Late Filing	No penalty	But affects good standing
Registered Agent	$0-$200/year	Free if you self-serve
Foreign LLC Registration	$50	For out-of-state LLCs
Certificate of Good Standing	$10	Per document

Item

Cost/Details

Notes

Articles of Organization

$50

One-time formation fee

Annual Statement

$25

Due February 15 each year

Late Filing

No penalty

But affects good standing

Registered Agent

$0-$200/year

Free if you self-serve

Foreign LLC Registration

$50

For out-of-state LLCs

Certificate of Good Standing

$10

Per document

Formation Costs

Forming an LLC in Michigan requires filing Articles of Organization with LARA (Michigan Licensing and Regulatory Affairs). Michigan has some of the lowest formation fees in the country.

Required Fees

Filing	Cost	Notes
Articles of Organization	$50	Required, one-time
Registered Agent Designation	$0	Included in Articles
Name Reservation (optional)	$25	Holds name 6 months

Affordable: At $50, Michigan has one of the lowest LLC formation fees in the United States. Compare this to Texas ($300), California ($70), or New York ($200).

Processing Times

Standard processing: 3-5 business days
Expedited (24-hour): Additional $50
Same-day processing: Additional $100
Online filing: Generally faster

Annual Fees and Statement

Every Michigan LLC must file an annual statement with LARA. This is your primary recurring compliance requirement.

Annual Statement Details

Filing fee: $25
Due date: February 15 each year
Filing method: Online through LARA or by mail
Late fee: None (but affects good standing)

Early Deadline: Note that February 15 is earlier than most states. Set reminders in January to ensure you file on time.

Michigan LLC Taxes

Pass-Through Taxation

Default: Pass-Through Tax Treatment

Michigan LLCs are treated as pass-through entities by default. Profits pass through to members, who report them on their personal Michigan tax returns.

Michigan State Income Tax

Rate: 4.25% flat rate
Applies to: All taxable income
LLC members: Pay on their share of LLC profits

No Franchise Tax

Michigan does not impose a franchise tax on LLCs. Your only required state fee is the $25 annual statement.

Corporate Income Tax (If Applicable)

If your LLC elects C-corporation taxation:

Rate: 6% Corporate Income Tax (CIT)
Filing: Michigan CIT Annual Return

Sales Tax

State sales tax: 6%
No local sales tax: Michigan doesn't allow local additions
Must register with Michigan Department of Treasury

Other Business Costs

Registered Agent Costs

Option	Annual Cost	Best For
Serve as your own agent	$0	MI residents available during business hours
Basic agent service	$50-$99	Privacy protection
Full-service agent	$100-$200	Compliance alerts included

Total Cost Breakdown

First Year Costs

Expense	Minimum	Typical
Articles of Organization	$50	$50
Registered Agent	$0	$100
First Year Total	$50	$150

Annual Ongoing Costs

Expense	Minimum	Typical
Annual Statement	$25	$25
Registered Agent	$0	$100
Annual Total	$25	$125

Cost-Saving Tips

1. File Online

Use LARA's online filing system. It's faster and provides immediate confirmation.

2. Remember the February 15 Deadline

Michigan's deadline is earlier than most states. Set reminders in early January.

3. Be Your Own Registered Agent (If Appropriate)

If you're a Michigan resident with consistent availability, serving as your own agent saves $50-$200/year.

Bottom Line: Michigan is one of the most affordable states for LLC ownership. At just $50 to form and $25/year to maintain, you can have a legally formed LLC for less than $100 in the first year if you serve as your own registered agent.

Frequently Asked Questions

What is the total cost to form an LLC in Michigan?

The minimum cost to form a Michigan LLC is just $50 for the Articles of Organization—one of the lowest in the country. With a registered agent service ($50-$200/year), expect first-year costs of $100-$250. Annual costs are only $25 plus any agent fees.

Does Michigan have a franchise tax for LLCs?

No, Michigan does not impose a franchise tax on LLCs. The only recurring state fee is the $25 annual statement. This makes Michigan one of the most affordable states for LLC maintenance.

When is the Michigan LLC annual statement due?

The annual statement is due by February 15 each year. Note that this is earlier than most states. The filing must be completed through LARA (Michigan Licensing and Regulatory Affairs).

What happens if I file my Michigan annual statement late?

Michigan does not charge a late fee for the annual statement. However, failure to file may affect your LLC's good standing and could eventually lead to involuntary dissolution if not filed for two or more consecutive years.

Do Michigan LLCs pay state income tax?

Michigan LLCs are typically pass-through entities. Profits pass through to members who pay at Michigan's flat 4.25% income tax rate. If the LLC elects C-corp taxation, it pays the 6% Corporate Income Tax.

Is Michigan a good state to form an LLC?

Michigan is excellent for LLC formation due to its extremely low fees ($50 formation, $25 annual), no franchise tax, and straightforward compliance. It's one of the most affordable states in the country for LLC ownership.

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